CITY OFFICE REIT INC (CIO) Stock Fundamental Analysis
NYSE:CIO - New York Stock Exchange, Inc. - US1785871013 - REIT - Currency: USD
Overall CIO gets a fundamental rating of 3 out of 10. We evaluated CIO against 129 industry peers in the Diversified REITs industry. While CIO seems to be doing ok healthwise, there are quite some concerns on its profitability. CIO is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CIO had negative earnings in the past year.
CIO had a positive operating cash flow in the past year.
In multiple years CIO reported negative net income over the last 5 years.
Each year in the past 5 years CIO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.82%, CIO is doing worse than 72.09% of the companies in the same industry.
CIO's Return On Equity of -3.61% is on the low side compared to the rest of the industry. CIO is outperformed by 66.67% of its industry peers.
CIO's Return On Invested Capital of 1.48% is on the low side compared to the rest of the industry. CIO is outperformed by 78.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CIO is in line with the industry average of 3.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.82% | ||
| ROE | -3.61% | ||
| ROIC | 1.48% |
ROA(3y)-0.59%
ROA(5y)5.55%
ROE(3y)-1.18%
ROE(5y)10.12%
ROIC(3y)1.69%
ROIC(5y)1.79%
1.3 Margins
CIO has a worse Operating Margin (15.58%) than 65.12% of its industry peers.
In the last couple of years the Operating Margin of CIO has declined.
CIO's Gross Margin of 59.74% is on the low side compared to the rest of the industry. CIO is outperformed by 68.22% of its industry peers.
CIO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.58% | ||
| PM (TTM) | N/A | ||
| GM | 59.74% |
OM growth 3Y-7.81%
OM growth 5Y-2.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.77%
GM growth 5Y-1.27%
2. Health
2.1 Basic Checks
CIO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CIO has more shares outstanding
CIO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CIO is higher compared to a year ago.
2.2 Solvency
CIO has an Altman-Z score of 0.54. This is a bad value and indicates that CIO is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.54, CIO perfoms like the industry average, outperforming 49.61% of the companies in the same industry.
CIO has a debt to FCF ratio of 32.33. This is a negative value and a sign of low solvency as CIO would need 32.33 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 32.33, CIO is in the better half of the industry, outperforming 72.09% of the companies in the same industry.
A Debt/Equity ratio of 0.89 indicates that CIO is somewhat dependend on debt financing.
CIO has a better Debt to Equity ratio (0.89) than 65.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 32.33 | ||
| Altman-Z | 0.54 |
ROIC/WACC0.23
WACC6.42%
2.3 Liquidity
CIO has a Current Ratio of 2.10. This indicates that CIO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.10, CIO belongs to the top of the industry, outperforming 80.62% of the companies in the same industry.
A Quick Ratio of 2.10 indicates that CIO has no problem at all paying its short term obligations.
CIO has a better Quick ratio (2.10) than 80.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
The earnings per share for CIO have decreased strongly by -132.14% in the last year.
The Revenue has decreased by -4.92% in the past year.
Measured over the past years, CIO shows a small growth in Revenue. The Revenue has been growing by 1.83% on average per year.
EPS 1Y (TTM)-132.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-50%
Revenue 1Y (TTM)-4.92%
Revenue growth 3Y1.43%
Revenue growth 5Y1.83%
Sales Q2Q%-5.02%
3.2 Future
Based on estimates for the next years, CIO will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.58% on average per year.
CIO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.23% yearly.
EPS Next Y35.65%
EPS Next 2Y20.59%
EPS Next 3Y15.58%
EPS Next 5YN/A
Revenue Next Year0.25%
Revenue Next 2Y1.91%
Revenue Next 3Y2.23%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for CIO. In the last year negative earnings were reported.
Also next year CIO is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CIO is valued cheaper than 86.05% of the companies in the same industry.
CIO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CIO is cheaper than 90.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.84 | ||
| EV/EBITDA | 9.6 |
4.3 Compensation for Growth
CIO's earnings are expected to grow with 15.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y20.59%
EPS Next 3Y15.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.10%, CIO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.78, CIO pays a bit more dividend than its industry peers.
CIO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.1% |
5.2 History
The dividend of CIO decreases each year by -10.58%.
CIO has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-10.58%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CIO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-89.69%
EPS Next 2Y20.59%
EPS Next 3Y15.58%
4.88
-0.06 (-1.21%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners65.18%
Inst Owner Change-1.4%
Ins Owners4.26%
Ins Owner Change7.53%
Market Cap196.96M
Analysts75.56
Price Target6.2 (27.05%)
Short Float %1.14%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.1% |
Yearly Dividend0.59
Dividend Growth(5Y)-10.58%
DP-89.69%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-103.31%
Min EPS beat(2)-217.5%
Max EPS beat(2)10.89%
EPS beat(4)2
Avg EPS beat(4)-65.11%
Min EPS beat(4)-217.5%
Max EPS beat(4)10.89%
EPS beat(8)5
Avg EPS beat(8)-34.24%
EPS beat(12)7
Avg EPS beat(12)-60.8%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.04%
Min Revenue beat(2)-2.8%
Max Revenue beat(2)-1.28%
Revenue beat(4)0
Avg Revenue beat(4)-1.86%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)-0.44%
Revenue beat(8)1
Avg Revenue beat(8)-1.12%
Revenue beat(12)4
Avg Revenue beat(12)-0.52%
Revenue beat(16)7
Avg Revenue beat(16)0.15%
PT rev (1m)-1.35%
PT rev (3m)-10.54%
EPS NQ rev (1m)-8.62%
EPS NQ rev (3m)-16.67%
EPS NY rev (1m)-3.95%
EPS NY rev (3m)-6.76%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.17 | ||
| P/FCF | 9.84 | ||
| P/OCF | 3.61 | ||
| P/B | 0.27 | ||
| P/tB | 0.28 | ||
| EV/EBITDA | 9.6 |
EPS(TTM)-0.65
EYN/A
EPS(NY)-0.34
Fwd EYN/A
FCF(TTM)0.5
FCFY10.17%
OCF(TTM)1.35
OCFY27.7%
SpS4.18
BVpS17.98
TBVpS17.17
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.82% | ||
| ROE | -3.61% | ||
| ROCE | 1.88% | ||
| ROIC | 1.48% | ||
| ROICexc | 1.51% | ||
| ROICexgc | 1.55% | ||
| OM | 15.58% | ||
| PM (TTM) | N/A | ||
| GM | 59.74% | ||
| FCFM | 11.86% |
ROA(3y)-0.59%
ROA(5y)5.55%
ROE(3y)-1.18%
ROE(5y)10.12%
ROIC(3y)1.69%
ROIC(5y)1.79%
ROICexc(3y)1.72%
ROICexc(5y)1.83%
ROICexgc(3y)1.79%
ROICexgc(5y)1.9%
ROCE(3y)2.14%
ROCE(5y)2.27%
ROICexcg growth 3Y-4.09%
ROICexcg growth 5Y-6.09%
ROICexc growth 3Y-3.25%
ROICexc growth 5Y-5.38%
OM growth 3Y-7.81%
OM growth 5Y-2.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.77%
GM growth 5Y-1.27%
F-Score2
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 32.33 | ||
| Debt/EBITDA | 7.56 | ||
| Cap/Depr | 58.16% | ||
| Cap/Sales | 20.45% | ||
| Interest Coverage | 0.76 | ||
| Cash Conversion | 63.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 | ||
| Altman-Z | 0.54 |
F-Score2
WACC6.42%
ROIC/WACC0.23
Cap/Depr(3y)52.99%
Cap/Depr(5y)267.48%
Cap/Sales(3y)18.45%
Cap/Sales(5y)93.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-132.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-50%
EPS Next Y35.65%
EPS Next 2Y20.59%
EPS Next 3Y15.58%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.92%
Revenue growth 3Y1.43%
Revenue growth 5Y1.83%
Sales Q2Q%-5.02%
Revenue Next Year0.25%
Revenue Next 2Y1.91%
Revenue Next 3Y2.23%
Revenue Next 5YN/A
EBIT growth 1Y-12.48%
EBIT growth 3Y-6.49%
EBIT growth 5Y-1.18%
EBIT Next Year237.57%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-68.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-48.48%
OCF growth 3Y-7.01%
OCF growth 5Y3.53%